How Cannabis Companies Can Use…

How Cannabis Companies Can Use Actionable Data to Improve Their Business

May 2, 2016 at 12:49 pm

Published by NCV Newswire

CannaInsider welcomed back Roy Bingham, the CEO of BDS Analytics for an interview regarding the data analytics company’s market insights on the cannabis markets in Colorado and Washington. Bingham is a former McKinsey consultant who invested in and worked with Spins, a data analytics company for the health food industry. BDS Analytics is modeled on Spins but targets the cannabis industry.

Bingham explained that dispensaries exchange data in order to access the full service, while the company monetizes through its cultivation and processing customers. BDS has created 80 categories and subcategories since there are no standardized SKU codes. Through this process, the company was able to learn that flower represented 63% of sales in 2015 in Colorado, with the balance represented by concentrates (20%) and edibles (12%). BDS is able to delineate between genus as well as strains (Durban Poison overtook Blue Dream last year). Similarly, BDS Analytics provides middle-level and even deeper layers within those categories, even to the brand level. Customers are able to drill down into categories or deeper levels using the company’s “GreenEdge”.

Bingham discussed some substantial differences between the Washington and Colorado markets. Washington flower sales were almost 70% of total sales in 2015, slightly higher than Colorado. Cherry OG and Dutch Treat are the two most popular strains. Interestingly, Indica strains are more popular in Washington than Colorado. The data points to the popularity of tinctures and the less frequent consumption of candy in Washington relative to Colorado.

Key Takeaways:
1:50 – Roy’s Background
6:04 – Roy compares and contrasts Spins and BDS
9:22 – Roy talks about how BDS serves its clients
12:10 – Mistakes made if owners don’t have insights and data
13:59 – Insights since the data has started mounting up
18:38 – Using the data in an optimal way
26:23 – Who in the organization analyzes the data
27:52 – Data in other states
30:28 – Insights coming from Washington
39:06 – Investing information
40:45 – Roy’s book recommendation
45:01 – Roy’s contact information

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